Watch Out For These Red Flags When collaborating with a Mortgage Broker
Are you in the market for a new mortgage? If so, it’s important to be aware of the signs that your mortgage broker is ripping you off. Unfortunately, there are many brokers out there who are only interested in making a quick buck, and they won’t hesitate to take advantage of unsuspecting homeowners. If you’re not careful, you could end up paying thousands of dollars more than you need to! https://rateconnect.ca/ can help you avoid such brokers!
For a start, be aware of brokers who use bait-and-switch tactics. This is when a broker promises to offer you one rate, but then offers you significantly more expensive terms after you’ve signed your paperwork. Additionally, beware of brokers that offer low teaser interest rates at the beginning of your contract and then hike up those rates later on. If they do this too often, it might be a sign that they are regularly overcharging their clients in order to make extra profit.
Another red flag to watch out for is if your mortgage broker requires upfront fees or makes you pay additional application costs before submitting your loan documents to the lender. These practices are illegal in many parts of North America, so if a broker asks you for money before doing anything else, it’s a good idea to look elsewhere.
Other signs that your broker may be ripping you off include using aggressive sales tactics, making promises they can’t keep, or pressuring you into signing documents without giving you enough time to review them. If any of these things are happening to you, it’s probably not a good idea to work with that mortgage broker!
With all of this in mind, if you’re shopping for a new mortgage and want to ensure that your broker is being honest and fair with you, do some research ahead of time and read online reviews from past customers. This will give you a good sense of whether or not the broker you are considering working with should be trusted. And remember – trust your instincts; if something doesn’t feel right, it probably isn’t.